S&P: Three Lebanon banks view to negative

Standard & Poor’s said it revised the outlooks on Bank Audi SAL, BankMed sal, and Blom Bank sal to negative from stable.

The agency also said it affirmed the banks’ B- long-term counterparty credit rating, along with the C short-term counterparty credit ratings on Bank Audi and on BankMed.

The outlook revisions follow the recent similar revision of the outlook on Lebanon, S&P said.

The negative outlook reflects a view that political uncertainty in Lebanon and regional tensions will continue to weigh on economic growth in the medium-term, the agency said.

The general government deficit is expected to widen in 2015 to close to 10% of GDP, despite an expectation that savings will be about 1.5% to 2% of GDP due to low oil prices, S&P said.

The Syrian crisis, now in its fifth year, and the flow of refugees to Lebanon continue to impose heavily on Lebanon’s public finances and infrastructure, the agency added.

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